Minnesota Gov. Tim Walz on Thursday vetoed legislation that would establish minimum compensation for independent contractor drivers for companies such as Uber and Lyft.

“Rideshare drivers deserve fair wages and safe working conditions. I am committed to finding solutions that balance the interests of all parties, including drivers and riders,” Walz said in a statement. “This is not the right bill to achieve these goals. I have spent my career fighting for workers, and I will continue to work with drivers, riders, and rideshare companies to address the concerns that this bill sought to address.”

However, Walz commissioned a study and called for a working group of drivers, riders, rideshare companies, members of the disabled community and labor to issue recommendations for rideshare legislation next year.

Prior to the veto, Uber had announced plans to pull out of Minnesota except for the Twin Cities metro area, the (Minneapolis) Star Tribune newspaper reported.

The vetoed bill would have mandated minimum compensation for drivers and called for compensation of at least $1.45 per mile and 34 cents per minute for all trips that start in the seven-county Minneapolis metropolitan area. Compensation would be at least $1.25 per mile and 34 cents per minute for trips that start elsewhere. Drivers would also receive 80% of cancellation fees for cancelled trip and a minimum fee of $5 for any transportation of a rider by a driver. It also requires clearly written rules stating when a driver may be deactivated or sanctioned and state a reasonable procedure for a driver to request reconsideration of deactivation.